In the US, every employer must have insurance to cover medical costs and lost wages for injured workers or those who become ill. If you don’t have insurance, you could be subject to penalties or fines by the state.
Workers’ compensation insurance covers your employees and business from work-related illnesses, accidents, and even death. If your business doesn’t have workers’ compensation insurance, you will need to pay out-of-pocket for the cost of a job-related injury.
How Does Workers Compensation Work?
If an employee is suffering from a work-related injury or illness, they must communicate with HR about the injury or illness and fill out an incident report. Then, the employee files a claim. Once the insurance claim is processed, the employee will receive payments and other benefits. The compensation amount is based on your coverage. However, as an employer, you can dispute a workers’ compensation claim if you think the illness or injury wasn’t work-related.
What Does Workers’ Compensation Insurance Cover?
Workers’ compensation insurance protects those injured or who get unhealthy from a work-related situation. Workers’ compensation includes wage replacement, disability benefits, and death benefits.
What Is Not Covered?
Workers’ compensation insurance doesn’t protect an employee who deliberately causes a workplace injury or illness. In addition, the policy doesn’t cover criminal acts that result in an injury. Other circumstances, like commuting to and from work, are not covered.